India is one of the largest and most dynamic countries on the face of the earth. With a population in the billions and containing hundreds of different spoken languages, it’s not hard to imagine how difficult it must be to reach out to everyone. Given the amounts of devout Muslims in the nation, it’s not surprising that outreach efforts might be difficult. Fortunately, the Bombay Stock Exchange (BSE) has a plan. The Bombay Stock Exchange has developed a Muslim-friendly stock index called the Tasis Shariah 50 to spur Islamic investment.
The investment plan, a brainchild of BSE Managing Director Madhu Kannan, is designed to “create increased awareness of financial investments among the masses and help enhance financial inclusion.” Under Sharia law, Muslims are forbidden from investing in companies that have ties to alcohol, firearms, or tobacco. Unfortunately, that’s most of the companies listed on the BSE. Officials from Tasis met with an Indian Shariah advisory board and together, they came up with a list of 50 stocks that are safe for Muslims to invest in with the goal of improving Islamic involvement in the trading industry. The stocks will be reviewed monthly to ensure Sharia compliance.
“The BSE has the largest number of listed Sharia-compliant stocks in the world,” said Shariq Nisar, director of research and operations at Tasis. “All Muslim countries of the Middle East and Pakistan put together do not have as many listed Sharia-complaint stocks as are available on the BSE.”
Sharia, or Shariah, is the Islamic court system, where offenses from bad haircuts to polygamy issues are solved by a religious system of justice. Sharia courts also serve as advisors for Muslims when it comes to other affairs governed by the Koran.
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